By Natalie DeCoste
The Consumer Financial Protection Bureau (CFPB) issued an interim final rule supporting the Centers for Disease Control and Prevention (CDC)’s eviction moratorium, ordering debt collectors to inform tenants about their rights if they have been unable to pay rent during the pandemic.
The new rule requires that debt collectors provide written notice to tenants of their rights and prohibits them from misrepresenting tenants’ eligibility for protection from eviction under the moratorium order.
This rule also applies to third-party representatives of the landlords, including attorneys and other third-party debt collectors. The debt collectors will have to inform tenants about their rights under the CDC moratorium no later than when the renter receives an eviction notice.
The CDC established the eviction moratorium to protect public health and reduce the spread of the virus. Many people who are evicted end up homeless or in crowded or shared living settings, which increases their vulnerability to COVID-19 and the risk of the disease spreading throughout communities.
“With COVID-19 killing hundreds of Americans every day, kicking families out into the street during this pandemic may literally be a death sentence. No one should be evicted from their home without understanding their rights, and we will hold accountable those debt collectors who move forward with illegal evictions. We encourage debt collectors to work with tenants and landlords to find solutions that work for everyone,” said CFPB Acting Director Dave Uejio.
President Joe Biden extended the CDC’s moratorium last month through the end of June, which will affect millions of Americans trying to regain a financial foothold after the economic downturn caused by the pandemic.
According to the CFPB, roughly 9 million households are behind on their rental payments. Additionally, tens of thousands of renters are being evicted every week, often without being informed of their rights under the CDC moratorium.
To be a “covered person” under the CDC’s eviction moratorium, a tenant must submit a written declaration under penalty of perjury attesting to certain eligibility criteria. Generally, the tenant must establish that, because of the person’s financial situation, the person cannot make full rental payments and, if evicted, would likely become homeless or be required to move into a congregate or shared living setting.
Under the eviction ban, landlords who violate the ban can face a $200,000 fine and a year in jail. However, no one has yet faced federal charges for continuing evictions despite the order.
